Sides squabble over tax measure

Tuesday

Sep 24, 2013 at 12:01 AMSep 25, 2013 at 12:38 PM

STOCKTON - The leading opponent to Stockton's tax measure headed for the Nov. 5 ballot said Monday he doesn't believe the city will fulfill a promise of significantly expanding its police force with new officers.

Scott Smith

STOCKTON - The leading opponent to Stockton's tax measure headed for the Nov. 5 ballot said Monday he doesn't believe the city will fulfill a promise of significantly expanding its police force with new officers.

Dean Andal, a conservative former state assemblyman, said that by his calculations, within four years, Stockton will be broke once again under the crushing cost of employee pensions.

Also relying on lessons from Stockton's past, he is opposed to Measure A, the proposed 3/4-cent sales tax increase that will raise $280 million over 10 years, if passed.

City leaders say they will use the bulk of the money to bolster Stockton's fight against crime, and the remainder plays a key part in the city's strategy to exit from bankruptcy.

City Manager Bob Deis accuses Andal of lacking credentials on the subject and failing to propose a viable alternative. Andal said this is so important because it is the last opportunity for Stockton to save itself by raising sales taxes.

He doubts city leaders are doing it correctly, and he wants voters to understand what's before them.

"This is a momentous decision for the city," Andal said. "It doesn't solve the problem."

Andal's comments were made to The Record's editorial board. He visited with David Renison, president of the San Joaquin County Taxpayers Association, which also opposes the tax hike.

Residents in six weeks will vote on Measure A, a general tax requiring 50 percent approval plus one to pass. The money can lawfully be used as city leaders see fit.

Measure B is a nonbinding companion piece also going on the ballot that says city leaders are to use it to fund the Marshall Plan on Crime and bankruptcy.

The Marshall Plan calls for expanding the Stockton Police Department by 120 officers, in addition to funding anti-gang programs, such as Project Ceasefire.

Andal laid out his leading criticisms of the general tax:

He said the city won't be able to hire an additional 120 officers as promised because rising pension costs will gobble up the new money in four years, sending Stockton back into insolvency.

As much as he credits current leaders for making hard choices, Andal doesn't trust City Council members who will be elected in the near future to remember today's promises.

"It doesn't give us more officers," Andal said. "And it won't get us out of bankruptcy."

He cites a utility tax hike under then-Mayor Joan Darrah, supposed to hire more police. More recently Measure W was sold to voters to do the same, said Andal, noting that the city has not fulfilled either promise.

Measure A is the last shot, because if it passes, Stockton's sales tax rate will rise to the ceiling at 9 percent, Andal said.

"The people of Stockton have been lied to before," Andal said. "Here we are on the 'fool me three times' moment."

Measure A continues to gain support. On Monday, the Business Council of San Joaquin announced its endorsement, saying that making Stockton's streets safe and quickly exiting bankruptcy are the city's top priorities.

Stockton leaders expect within weeks to present their plan of adjustment, which anticipates an annual $11 million budget shortfall even if creditors agree to it.

Without the new tax, the city will have to cut more, city leaders say.

"On the chopping block will be libraries, parks, community centers and critical government services," developer Fritz Grupe, Business Council chairman, said in a written statement. "There will be nothing to keep business here."

Deis, who retires Nov. 1, said he's lined up the nation's top experts on municipal bankruptcy, finances and crime to turn Stockton around and craft a plan for the city's future. Andal sits back doubting, Deis said.

"What's he going to get behind?" Deis asked. "What's his plan for solving Stockton's multigenerational crime? What's his plan on bankruptcy? What's his plan for turning Stockton around?"

Both Andal and Renison point to a city financial document from Stockton's confidential mediation with creditors that they say proves the city's math is deeply flawed.

Deis said the document is outdated and inaccurate, and the numbers have changed. Stockton hired an actuary, who did calculations showing that the city won't return to bankruptcy court as the naysayers predict, Deis said.

Those figures are expected to be presented publicly to the City Council in the near future.

Councilman Elbert Holman believes in Measures A and B so much that he's going to contribute $5,000 total to the campaign from his personal and election bank accounts.

Holman was on the council that had to cut $90 million over three years and then voted to eliminate health care for city retirees. He also voted to take Stockton into bankruptcy. Each one was painful, said Holman, who asks critics such as Andal for a better vision for Stockton.

"What do you propose we do?" Holman said. "The debt's there. The creditors are knocking at the door, saying 'We want our money.' We owe this money. What do we do, languish in bankruptcy for years and years?"

The debate continues. The League of Women Voters of San Joaquin County is planning an Oct. 7 forum on Measures A and B. Deis and Andal have both agreed to present their arguments. A location has yet to be secured.